Eduardo Sousa | The Guardianhttp://www.theguardian.com/profile/eduardo-sousa
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Europe's denial of debt default will only make matters worse | Nuno Monteiro and Eduardo Sousahttp://www.theguardian.com/commentisfree/2011/may/19/europe-debt-default-restructuring-euro
The middle ground of debt restructuring must be considered for the likes of Greece and Ireland to avoid the breakup of the euro<p>While a growing number of analysts recognise the likelihood of sovereign-debt defaults across Europe's periphery in the next few years, the continent's political and financial elites continue to see <a href="http://www.guardian.co.uk/business/2011/apr/22/greek-reported-to-be-restructuring-debt" title="Guardian: Greeks 'planning debt restructuring'">restructuring</a> as the third rail of financial options. Despite all signs that the euro may be set on an implosion course, the EU and the European Central Bank (ECB) are in a state of denial.</p><p></p> <a href="http://www.theguardian.com/commentisfree/2011/may/19/europe-debt-default-restructuring-euro">Continue reading...</a>Eurozone crisisEuropean banksEuropean Central BankBusinessEuropePortugalIrelandGreeceWorld newsThu, 19 May 2011 10:10:29 GMThttp://www.theguardian.com/commentisfree/2011/may/19/europe-debt-default-restructuring-euroMilos Bicanski/Getty ImagesIn Greece, riot police clash with protesters during a general strike last week called against government austerity measures. Photograph: Milos Bicanski/Getty ImagesMilos Bicanski/Getty ImagesIn Greece, riot police clash with protesters during a general strike last week called against government austerity measures. Photograph: Milos Bicanski/Getty ImagesNuno Monteiro and Eduardo Sousa2011-05-19T10:10:29ZThe likes of Portugal should default on their debt | Nuno Monteiro and Eduardo Sousahttp://www.theguardian.com/commentisfree/2011/apr/15/portugal-debt-default
Conditional bailouts are a recipe for stagnation, social unrest and political turmoil – a co-ordinated debt default is preferable<p>Faced with an increasingly dire financial situation, Portugal has started <a href="http://www.guardian.co.uk/world/2011/apr/07/portugal-eu-bailout" title="Guardian: Portugal's PM calls on EU for bailout">negotiating a bailout package</a> with the European Union (EU) and the International Monetary Fund (IMF). It follows in the footsteps of Greece and Ireland, two countries where bailouts have proved ineffective. Still, few dare defend the most effective policy option in all three cases: a managed sovereign-debt default.</p><p>Such a default would allow the Greek, Irish, and Portuguese governments to push back their accumulated debt obligations, lowering the interest rates they serve, postponing reimbursement, and, if necessary, repaying only part of the capital they owe. Like personal bankruptcy – which allows an over-indebted individual to renegotiate reimbursement terms – a sovereign default allows countries to repay current debts according to future income expectations. A bailout, on the contrary, prioritises lenders by reimbursing them completely and abiding by the initially agreed-upon interest rates and repayment schedules, forcing the government to adjust future income to the weight of accumulated debt.</p> <a href="http://www.theguardian.com/commentisfree/2011/apr/15/portugal-debt-default">Continue reading...</a>PortugalEuropeIrelandGreeceFinancial crisisEurozone crisisBankingBusinessEuropean UnionEuroEconomicsEuroWorld newsFri, 15 Apr 2011 13:30:00 GMThttp://www.theguardian.com/commentisfree/2011/apr/15/portugal-debt-defaultArmando Franca/APLisbon is suffering as Portugal's economic recovery flags. Photograph: Armando Franca/APArmando Franca/APLisbon is suffering as Portugal's economic recovery flags. Photograph: Armando Franca/APNuno Monteiro and Eduardo Sousa2011-04-15T13:30:00Z